Market Verdict on Iron Ore：
· Neutral.
Macro
· G20 Finance Minister believed that the pandemic related downside risk will still become an obstacle of global economy recovery, and encouraging countries to leverage political tools to counter against this pandemic impact.
Iron Ore Key Indicators:
· Platts 62% 126.00 (+2.40), MTD 122.83.PBF traded down 4 yuan/tonne at Qingdao port, and dropped 5 yuan/tonne on the following this morning. However seaborne trades were in general active and saw a recover on premium in major MACF, PBF and Newman Fines. Mills interested to buy front months after the production cut plan out in most of areas in China. However the December and January remain rather weaker since approaching the year-end when expecting a lighter demand. Thus spread of Nov-Dec maintain bullish in short run. Nearby outright contracts faced uncertain risk since the after holiday sentiment was exhausted by the rebound during last week.
· Mysteel researched 247 blast furnace operation rate at 78.07%, up 0.55% w-o-w. Utilisation rate 80.66%, up 0.72% w-o-w. Daily pig iron production 2.16 million tonnes, up 19,200 tonnes.
· MySteel 45 ports iron ore inventories at 138.98 million tonnes, up 4.79 million tonnes w-o-w. Daily evacuation 2.67 million tonnes, down 67,000 tonnes w-o-w. Australia iron ore 67.11 million tonnes, up 2.38 million tonnes w-o-w. Brazil iron ore 46.29 million tonnes, up 2.46 million tonnes w-o-w. 208 ships at ports, up 4.
· Rio Tinto Pilbara miner iron ore production 83.3 million tonnes, up 10% from Q2, down 4% y-o-y. Delivery in Q3 83.4 million tonnes, up 9% from Q2, up 2% from last year.
SGX Iron Ore 62% Futures& Options Open Interest (Oct 14th)
· Futures 69,062,800 tonnes(Increase 812,800 tonnes)
· Options 83,769,000 tonnes(Increase 612,500 tonnes)
Steel Key Indicators
· China sample EAF rebar average cost 5019 yuan/tonne, up 12 yuan/tonne w-o-w. The average cost was 825 yaun/tonne, down 117 yuan/tonne w-o-w.
· World Steel Association predicted that global steel consumption growing by 4.5% to 1.855 billion tonnes in the year 2021. Last prediction was a growth by 5.8%.
Coal Indicators
· U.S. coal export up 46.5% y-o-y calculated in dollars. The first 3 quarters, China contributed 25.8% of U.S. coal exports, 33.9% of Canada coal exports.
